A State-Owned Enterprise, commonly referred to as “Perum,” is a business entity with distinct characteristics under Indonesian law. These companies play a significant role in the country’s economic structure.
Perum is governed by clear legal frameworks that cover various operational aspects in Indonesia. These regulations serve as a crucial foundation for Perum in carrying out its activities.
What Is a State-Owned Enterprise?
A State-Owned Enterprise is a government-owned business entity regulated by Law Number 9 of 1969, where all its capital comes from the state’s wealth, separated and not divided into shares.
Legal Basis of State-Owned Enterprises in Indonesia
The legal basis for Perum is established by government regulations. Some of the government regulations governing state-owned enterprises in Indonesia include:
- Government Regulation Number 13 of 1998 concerning State-Owned Enterprises
- Government Regulation Number 38 of 2018 concerning State-Owned Enterprises
- Law Number 9 of 1969 on the Stipulation of Government Regulation in Lieu of Law Number 1 of 1969
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Characteristics of State-Owned Enterprises
Some of the main characteristics of state-owned enterprises include:
- Legal Entity: Recognized as a legal entity.
- Capital from State Assets: The capital comes from state assets separated from national wealth.
- Non-Shares: Capital is not divided into shares.
- Public and Profit-Oriented: Aimed at serving public interests while generating profits.
- Stock/Bond Options: For publicly listed companies, capital may be in the form of stocks or bonds.
- Revenue for State Treasury: Profits are used to fill the state treasury.
- Board of Directors/Director Leadership: Led by a Board of Directors or a Director.
- Independent Contracts: Authorized to enter into contracts with other parties.
- Company Employees: Employees hold the status of company employees.
- Annual Report Approval by Government: Annual reports must be approved by the government and submitted to the minister on behalf of the government.
- Separate Assets: Possesses its own assets.
- Public Services: Engaged in the provision of public services.
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Functions of State-Owned Enterprises
State-Owned Enterprises have several key functions that support their role in the country’s economic structure, including:
- Public Service: Providing services and products needed by the public, such as energy, transportation, communication, and other public services.
- Contribution to Development: Playing a role in the development of national infrastructure and the economy by providing essential services for growth and progress.
- Job Creation: Providing job opportunities in various business sectors.
- Filling the State Treasury: Through its business activities, Perum significantly contributes to the state treasury through taxes and dividends to the government.
- Stability of Essential Services: Ensuring the availability and stability of essential services for the public, such as electricity, water, transportation, and communication.
These functions highlight the critical role of Perum in maintaining economic continuity and societal well-being.
Main Objectives of State-Owned Enterprises
The primary mission of State-Owned Enterprises focuses on specific objectives, including:
- Public Service: Providing services needed by the public in various aspects of life.
- Profitability: Aiming to achieve financial profits from its operations.
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Advantages and Disadvantages of Perum
State-Owned Enterprises have advantages that add value to their operations, but they also have some drawbacks that need to be addressed. The advantages of Perum include:
- Government-Owned Capital: Government ownership allows for more efficient oversight and control over company performance.
- Public Service and Profit: Aims to serve the public while being profit-oriented to fill the state treasury.
- Service for Public Needs: Operates in business sectors that provide essential services for many people, preventing monopolies by the private sector.
However, there are also some disadvantages of State-Owned Enterprises, such as:
- Lower Employee Productivity: Employee productivity in Perum is often below average compared to private companies.
- Limited Job Access: Perum plays a limited role in creating job opportunities and reducing unemployment and poverty due to limited access for the general public.
- Potential Waste of Working Capital: Lack of market competition can lead to inefficiency in the use of working capital.
Differences Between Perum and Persero
What distinguishes Perum from Persero?
As previously mentioned, all capital in Perum comes from the state. Its assets and capital are officially separated state assets and not divided into shares. The main goal of Perum is to provide services to the public, not solely to seek profits. On the other hand, Persero, which is also a State-Owned Enterprise (BUMN), has capital divided into shares, with at least 51% owned by the state. Persero is profit-oriented with the aim of maximizing profits.
Examples of State-Owned Enterprises
Some examples of State-Owned Enterprises (Perum) in Indonesia that play important roles in various sectors are:
- PT Perusahaan Listrik Negara (PLN): As the largest electricity service provider in Indonesia, PLN is an example of Perum focused on public service in the energy sector.
- PT Perusahaan Gas Negara (PGN): A company engaged in the distribution of natural gas in Indonesia, playing a vital role in supplying gas for various needs.
- PT Pos Indonesia (Persero): Although now bearing the name “Persero,” PT Pos Indonesia was initially a Perum focused on postal and logistics services in Indonesia.
- PT Telekomunikasi Indonesia (Persero) Tbk (Telkom): Telkom was also a Perum before transforming into a Persero, with a focus on telecommunications services.
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State-Owned Enterprises play a crucial role in Indonesia’s economy, focusing primarily on public service and contributing to societal progress. While they have advantages in providing essential services, State-Owned Enterprises also face challenges in terms of productivity and job access. Nonetheless, their vital functions make them an essential element in supporting the country’s growth and welfare.
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